The United States Postal Service estimates that 25% of all mail pieces have something wrong with the address such as an incorrect ZIP code or missing suite number. And while these mail pieces are usually still delivered, they are most often delayed. The quicker your customer receives his invoice, the quicker he can pay you. more...

One thing I have learned the past three years is that change is inevitable. Between being merged, acquired, expanded, and nearly bankrupt, I find I am in a constant state of change. For someone who is used to consistency and structure, the last few years have been challenging. I either had to cope with the changes and make the best of them or become extinct. more...

Did you know that National Email Week is celebrated in the month of June? Email is becoming an increasingly dominant form of communication in the business world. And, since a whole week has been dedicated to honoring this technology, I thought we would look at 10 tips for improving email communication.
1. Subject Lines. It could be argued that subject lines are the most important part of an email. They are generally what convince a recipient to either open an email or ignore it. Subject lines should contain concise, descriptive information about the topic you are addressing - the meat of your email - and the action you would like the recipient to take. They should also be descriptive enough to allow the recipient to quickly find your email if he or she needs to refer back. Be specific and streamline your subject by using short words and eliminating unnecessary words. Consider using action verbs and dates and times when needed. And never leave the subject line blank. more...

Nina Flurer, CCE, a regional credit manager with H&E Equipment Services, Inc. presented at the May ICEL meeting. She addressed the topic of how to stop being bullied by bad customers - a topic to which most all credit managers can relate.
Ironically enough, the term bully can be abused (no pun intended). Just because someone engages in behavior that someone does not like or agree with, does not necessarily mean it is abusive. Nina encouraged attendees to incorporate the "reasonable person test." This test requires asking if most people would consider what the other person is saying or doing to be inappropriate or unacceptable.
Once it has been determined that the actions of a customer are that of a bully, his or her actions will typically fall into one of two categories more...

Why the sales driven organization must encourage partnership between sales and credit to succeed.
The selling team of yesteryear would have a hard time getting along, or even understanding the business world of today. Things have changed such that a client's credit worthiness is just as, or even more important than, the gross revenue potential of that coveted client. In the old days when the "big sale" ruled all, we (the selling organization) kept the credit department quite busy cleaning up when one of those big sales turned into a big collection nightmare. more...

Have you experienced ballistic moments dealing with sales people? If you have, you are not alone. At times, the friction between credit & sales produces a duel of epic proportion; well it seems like it at the time.
Sales: Excited voice "I have a new customer that is 'golden' and they want to buy A LOT - RIGHT NOW!"
Credit: Up go the hackles . . . "Ummm, looking at their credit report and payment history, the only possible way we can sell them is cash in advance."
Sales: Angry "Oh Come On! They're good for it!"
Credit and sales have very different personality . . .
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I am often asked by creditors whether they can file a lien against their customer's property because the customer is seriously delinquent. The creditor is usually looking for a simple "yes" or "no" answer. But, it really isn't a simple question so I respond either with the standard "depends," or launch into a series of questions. Why? Because some liens can be filed without the debtor's consent and some require the debtor's consent.
There are voluntary liens: those that require the debtor's consent, and involuntary liens more...

Business credit fraud is an intentional plot to scam a business out of "value" without payment. This may be accomplished by providing a credit department with carefully crafted inaccurate information hoping that it goes unnoticed thus allowing the flimflam artist to get away with as much value as possible.
Let's look at an attempted fraud scenario that happened recently in Utah.
An NACM member received a phone order from a caller in Ohio declaring that they had a "staple emergency" and needed product to be "shipped immediately" more...

Jobless rate climbs. Tougher bank rules. Wall Street drops. Firms less optimistic . . . With headlines like these how are we ever to feel confident about extending credit to anyone?
Fortunately, the tried and true 5 C's of Credit are still valuable tools for evaluating a client for creditworthiness.
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Recently, I noticed that our receivables had plateaued. We had several accounts that were showing up on our aging day after day, week after week, and with no apparent progress. Since I know that doing the same thing, the same way, and expecting different results is the definition of insanity, I decided to try to mix things up. Instead of setting up new procedures or policies, all I did was to reassign which accounts were handled by my collectors.
Sounds simple, right?
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You've been awarded a judgment against your debtor for the collection of the debt. Knowing that it is now your responsibility to collect that debt, you contact a collections attorney [editor's note: or NACM] to assist you in enforcing the judgment. But what happens if your debtor moves to another state or the property to be seized is located elsewhere? Do you lose your judgment? No, but there is a process you must go through to have the judgment be valid in another state. (Actually, before you can seize assets located in a different county of the same state, you must docket the judgment in that county. But that is more common and relatively easy.)
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With the elections on our minds, have you ever wondered how politics affects the world of credit? If you don't, you should.
Regardless of your political persuasion, the people who govern us have an impact on our daily lives. This is true and applicable to our careers and how we conduct business. When it comes to politics and government, I want to quote Dr Seuss; "Sometimes the questions are complicated and the answers are simple."
To demonstrate the significance of the influence of politics on our business take a small piece of the puzzle and look at the evolution of the Mechanics' Lien laws over the past several years. We have gone from a simplistic means to file a lien for unpaid debts as suppliers to ...
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Dawn Meehan, a former Survivor television show contestant, spoke to ICEL in October. Dawn's presentation was enthusiastic and energetic and provided fascinating insight, especially for the Survivor TV show fans in the group.
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In performing our responsibilities as credit professionals and as members of NACM, we pledge to conduct our duties within the boundaries of the law and to not intentionally injure the reputation of others. Each of us pledge ourselves to the highest professional standards and principles, and by reading the Anti-Trust Compliance and Anti-Defamation Statements in group meetings, we are agreeing to abide by these statements. The last paragraph of the statement begins "The Association and Credit Groups endorse and comply with the highest standards of professional conduct . . ." Each group member is agreeing to guard, secure, and keep in confidence, the information that is exchanged for the sole purpose of analyzing and extending commercial credit within their individual company.
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